Piedmont to sell Haile project

In an effort to settle its long-standing dispute with partner Lancaster Mining, Piedmont Mining (PIED-O) will sell its minority interest in the Haile joint venture in South Carolina,

For US$2 million, Piedmont agreed to sell its 37.5% interest in the gold project to Lancaster, a subsidiary of Kinross Gold (K-T).

Piedmont joint-ventured the 3,600-acre Haile property with Amax Gold in the early 1990s. Subsequent exploration delineated sulphide-bearing gold mineralization totalling almost 800,000 oz. gold within 8.7 million tons grading 0.089 oz. per ton. However, development was eventually bogged down in a legal dispute over interpretations of the joint-venture agreement.

In June 1998, Amax Gold was purchased by Kinross. The transaction with Piedmont is part of a program by Kinross to tie up loose ends after the merger.

The company says it has no immediate plans for the Haile property, aside from remediation efforts.

The transaction has yet to be approved by Piedmont shareholders.